Pioneer Property Group ASA ("The Company") has entered into
agreement, through its subsidiary Pioneer Public Properties V AS,
to acquire nine additional properties at a total property value of
MNOK 188. The majority of the properties have been acquired from
Norlandia Care Group. Total annual rental income is MNOK 12.2 and
the financial transfer of rights, including title to properties and
rental income, will be effective immediately. The portfolio has
MNOK 44 in existing debt, and the net purchase price will be
financed from the current cash reserves in Pioneer Public
Properties AS. However, the Company in in the process of sourcing
additional bank financing, which should reduce the equity portion
of the acquisition within the near future. Eight of the properties
are pre-schools, with five located in Norway, two in Finland and
one in Sweden. The last property an elderly-care home in Sweden.
All the properties have long-term, triple-net, lease contracts with
Norlandia Care Group. The properties therefore have similar
characteristics to the Company's existing portfolio of pre-schools,
and the purchase also marks the first step into the Swedish and
Finish markets in line with the company's previously communicated
strategy plan. In conjunction with the transaction, all the
properties have been valued by an independent valuation company and
have also been treated as a related party transaction in respect of
the Company's controlling shareholders.